Core Insights - Brookfield Renewable Corporation operates in 25 countries and has a significant presence in clean energy with approximately $126 billion in assets under management [1] - The company offers a forward-yielding dividend of 4.7%, making it an attractive option for income investors seeking passive income [2] - Brookfield Renewable has a strong track record of increasing its dividend, achieving a 6% compound annual growth rate from 2001 to 2024, with management targeting 5% to 9% increases in the coming years [5] Dividend and Income Potential - The company has declared dividends of $0.373 per share for the first two quarters of 2025, which could total $1.492 per share for the year [7] - To generate $5,000 in annual income from Brookfield Renewable stock, an investor would need to own 3,352 shares [7] Valuation and Market Performance - As of June 12, shares of Brookfield Renewable have increased by approximately 16% year to date and are currently valued at 10.4 times operating cash flow, above their five-year average of 5.7 [8] - Despite the premium valuation, the company's consistent generation of strong funds from operations supports its attractiveness for investors [8]

Group 1 - Brookfield Renewable Corporation (TSX: BEP.UN:CA, NYSE: BEPC, NYSE: BEP) offers a combination of high-quality assets, growth potential, and a yield exceeding 5% while trading at a fair valuation [1] - The company is positioned to benefit from a long-term bull market for electricity, enhancing its investment appeal [1]

[Consolidated Financial Statements](index=2&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Statements of Financial Position](index=2&type=section&id=Consolidated%20Statements%20of%20Financial%20Position) As of March 31, 2025, total assets increased to $44.96 billion from $44.13 billion at the end of 2024, primarily driven by a rise in the fair value of property, plant, and equipment. Total equity also grew to $12.44 billion from $12.11 billion over the same period Key Balance Sheet Items (in millions) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$44,964** | **$44,129** | | Cash and cash equivalents | $614 | $624 | | Property, plant and equipment, at fair value | $39,731 | $38,696 | | **Total Liabilities** | **$32,522** | **$32,021** | | Non-recourse borrowings | $14,111 | $13,775 | | Deferred income tax liabilities | $6,689 | $6,493 | | **Total Equity** | **$12,442** | **$12,108** | [Consolidated Statements of Income (Loss)](index=3&type=section&id=Consolidated%20Statements%20of%20Income%20%28Loss%29) For the three months ended March 31, 2025, the company reported a net loss of $5 million, a significant decrease from a net income of $491 million in the same period of 2024. The change was primarily driven by lower revenues, which fell to $907 million from $1.125 billion, and the absence of a large remeasurement gain that occurred in the prior year Q1 Income Statement Highlights (in millions) | Account | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Revenues | $907 | $1,125 | | Direct operating costs | $(368) | $(484) | | Interest expense | $(413) | $(363) | | Remeasurement gains | $223 | $548 | | **Net (Loss) Income** | **$(5)** | **$491** | [Consolidated Statements of Comprehensive Income](index=4&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) Comprehensive income for Q1 2025 was $395 million, an increase from $208 million in Q1 2024. This was primarily due to a significant positive foreign currency translation adjustment of $554 million, which offset the net loss and other comprehensive losses Q1 Comprehensive Income (in millions) | Account | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net (Loss) Income | $(5) | $491 | | Foreign currency translation | $554 | $(171) | | Other comprehensive income (loss) | $(156) | $(112) | | **Comprehensive Income** | **$395** | **$208** | [Consolidated Statements of Changes in Equity](index=5&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Equity) Total equity increased from $12.11 billion at the end of 2024 to $12.44 billion as of March 31, 2025. The increase was driven by other comprehensive income of $400 million and capital contributions of $101 million, partially offset by a net loss of $5 million and dividends declared of $149 million Q1 2025 Changes in Equity (in millions) | Item | Amount | | :--- | :--- | | Balance, as at December 31, 2024 | $12,108 | | Net loss | $(5) | | Other comprehensive income | $400 | | Capital contributions | $101 | | Dividends declared | $(149) | | Other | $(13) | | **Balance, as at March 31, 2025** | **$12,442** | [Consolidated Statements of Cash Flows](index=6&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For Q1 2025, net cash provided by operating activities was $110 million, a decrease from $257 million in Q1 2024. Investing activities used $252 million, primarily for investments in property, plant, and equipment. Financing activities provided $104 million. Overall, cash and cash equivalents decreased by $10 million during the quarter Q1 Cash Flow Summary (in millions) | Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Cash from Operating Activities | $110 | $257 | | Net Cash from Financing Activities | $104 | $137 | | Net Cash from Investing Activities | $(252) | $(371) | | **Net Change in Cash** | **$(38)** | **$23** | [Notes to the Unaudited Interim Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20the%20Unaudited%20Interim%20Consolidated%20Financial%20Statements) [Note 1: Basis of Presentation and Accounting Policies](index=8&type=section&id=1.%20Basis%20of%20presentation%20and%20material%20accounting%20policy%20information) The financial statements are prepared in accordance with IAS 34, Interim Financial Reporting. A key event was the 'Arrangement' completed on December 24, 2024, where Brookfield Renewable Corporation (BEPC) became the successor issuer to the former BEPC (renamed BRHC). The transaction is accounted for using a continuity of interest basis, reflecting BRHC's historical carrying values - The financial statements are prepared on a basis consistent with the December 31, 2024 audited consolidated financial statements[20](index=20&type=chunk) - On December 24, 2024, the company completed an 'Arrangement' to maintain its business structure benefits while addressing proposed Canadian tax law changes. This made the current BEPC the 'successor issuer' to the former entity[24](index=24&type=chunk) - Due to common control by the partnership both before and after the Arrangement, the acquisition of BRHC is reflected using BRHC's historical carrying values to show a continuity of interests[25](index=25&type=chunk)[27](index=27&type=chunk) [Note 2: Risk Management and Financial Instruments](index=9&type=section&id=2.%20Risk%20management%20and%20financial%20instruments) The company is exposed to market, credit, and liquidity risks, which it manages using financial instruments. As of March 31, 2025, net financial instrument assets totaled $29 million. The majority of assets measured at fair value, such as Property, Plant and Equipment ($39.7 billion), are classified as Level 3, indicating reliance on unobservable market data Fair Value Hierarchy of Assets and Liabilities (March 31, 2025, in millions) | Category | Level 1 | Level 2 | Level 3 | Total | | :--- | :--- | :--- | :--- | :--- | | Assets measured at fair value | $678 | $203 | $39,754 | $40,635 | | Liabilities measured at fair value | $0 | $(379) | $(413) | $(792) | Net Financial Instrument Position (in millions) | | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Financial Instrument Assets | $821 | $786 | | Total Financial Instrument Liabilities | $792 | $652 | | **Net Assets** | **$29** | **$134** | [Note 3: Segmented Information](index=12&type=section&id=3.%20Segmented%20information) The company's operations are segmented by technology: Hydroelectric, Wind, Utility-scale solar, Distributed energy & sustainable solutions, and Corporate. Performance is primarily assessed using Funds From Operations (FFO) on a proportionate basis. For Q1 2025, total FFO was $139 million, with the Hydroelectric segment being the largest contributor at $114 million - The company's operations are segmented by technology: 1) hydroelectric, 2) wind, 3) utility-scale solar, 4) distributed energy & sustainable solutions, and 5) corporate[51](index=51&type=chunk) - Performance is analyzed based on Funds From Operations (FFO), a non-IFRS measure used to assess performance before certain non-cash and non-recurring items[58](index=58&type=chunk)[59](index=59&type=chunk) Funds From Operations by Segment (Q1 2025, in millions) | Segment | FFO | | :--- | :--- | | Hydroelectric | $114 | | Wind | $23 | | Utility-scale solar | $22 | | Distributed energy & sustainable solutions | $5 | | Corporate | $(25) | | **Total** | **$139** | [Note 4: Income Taxes](index=17&type=section&id=4.%20Income%20taxes) The effective income tax rate for Q1 2025 was 350.0%, a significant deviation from the statutory rate due to rate differentials, non-deductible expenses, and other factors. The company has applied temporary relief from recognizing deferred taxes related to the new global minimum top-up tax, which is not expected to have a significant impact - The effective income tax rate was **350.0%** for Q1 2025, compared to 6.3% for Q1 2024[65](index=65&type=chunk) - The company has applied temporary mandatory relief from recognizing and disclosing deferred taxes related to the global minimum top-up tax, which is not anticipated to have a significant impact[66](index=66&type=chunk) [Note 5: Property, Plant and Equipment](index=18&type=section&id=5.%20Property%2C%20plant%20and%20equipment) The fair value of property, plant, and equipment (PP&E) increased to $39.73 billion at March 31, 2025, from $38.70 billion at year-end 2024. The increase was primarily driven by a $948 million positive foreign exchange adjustment and $359 million in additions, partially offset by $307 million in depreciation Reconciliation of PP&E (in millions) | Item | Amount | | :--- | :--- | | Balance, as at December 31, 2024 | $38,696 | | Additions | $359 | | Foreign exchange | $981 | | Depreciation | $(307) | | Other | $(2) | | **Balance, as at March 31, 2025** | **$39,731** | - During Q1 2025, the company acquired a **177 MW** portfolio of utility-scale solar development assets in the U.S., adding **$23 million** to PP&E[68](index=68&type=chunk) [Note 6: Borrowings](index=18&type=section&id=6.%20Borrowings) Total non-recourse borrowings stood at $14.11 billion as of March 31, 2025, with a weighted-average interest rate of 7.0% and an average term of 8 years. These borrowings are typically asset-specific and denominated in the local currency of the subsidiary Non-Recourse Borrowings by Segment (March 31, 2025) | Segment | Carrying Value (millions) | Weighted-Avg Rate (%) | Term (years) | | :--- | :--- | :--- | :--- | | Hydroelectric | $7,772 | 7.8% | 6 | | Wind | $1,961 | 6.0% | 8 | | Utility-scale solar | $3,420 | 6.1% | 12 | | Distributed energy & sustainable solutions | $1,024 | 5.1% | 9 | | **Total** | **$14,177** | **7.0%** | **8** | [Note 7: Non-controlling Interests](index=19&type=section&id=7.%20Non-controlling%20interests) Non-controlling interests totaled $11.01 billion as of March 31, 2025, up from $10.77 billion at the end of 2024. The majority ($10.74 billion) relates to participating interests in operating subsidiaries held by third parties, including various Brookfield-sponsored infrastructure funds Composition of Non-controlling Interests (in millions) | Category | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Participating non-controlling interests – in operating subsidiaries | $10,737 | $10,508 | | Participating non-controlling interests – in a holding subsidiary | $269 | $259 | | **Total** | **$11,006** | **$10,767** | [Note 8: Exchangeable Shares](index=21&type=section&id=8.%20BEPC%20Exchangeable%20Shares%2C%20BRHC%20Exchangeable%20Shares%2C%20Class%20A.2%20Exchangeable%20Shares%2C%20BRHC%20Class%20B%20Shares%20and%20BRHC%20Class%20C%20Shares) Various classes of exchangeable shares are classified as financial liabilities due to their redemption features and are remeasured based on the market price of BEP units. As of March 31, 2025, the total financial liability for these shares was $8.38 billion, down from $8.60 billion at year-end 2024, primarily due to a remeasurement loss of $223 million - BEPC exchangeable shares, BRHC class B and C shares, and class A.2 exchangeable shares are classified as liabilities and remeasured to reflect the NYSE closing price of a BEP unit[75](index=75&type=chunk)[78](index=78&type=chunk) Continuity of Exchangeable Shares Liability (in millions) | Item | Amount | | :--- | :--- | | Balance, as at December 31, 2024 | $8,600 | | Share exchanges | $0 | | Remeasurement of liability | $(223) | | **Balance, as at March 31, 2025** | **$8,377** | - During Q1 2025, the company declared dividends of **$68 million** on BEPC and class A.2 exchangeable shares and **$95 million** on BRHC class C shares, which are presented as interest expense[80](index=80&type=chunk) [Note 9: Goodwill](index=23&type=section&id=9.%20Goodwill) Goodwill increased to $727 million as of March 31, 2025, from $692 million at the end of 2024, with the change attributed to foreign exchange and other adjustments Goodwill Reconciliation (in millions) | Item | Amount | | :--- | :--- | | Balance, as at December 31, 2024 | $692 | | Foreign exchange and other | $35 | | **Balance, as at March 31, 2025** | **$727** | [Note 10: Equity-Accounted Investments](index=23&type=section&id=10.%20Equity-accounted%20investments) The value of equity-accounted investments rose to $774 million as of March 31, 2025, from $753 million at year-end 2024. The increase reflects a new investment of $20 million, offset by a share of net loss of $2 million Equity-Accounted Investments Reconciliation (in millions) | Item | Amount | | :--- | :--- | | Balance, as at December 31, 2024 | $753 | | Investment | $20 | | Share of net loss | $(2) | | Foreign exchange translation and other | $3 | | **Balance, as at March 31, 2025** | **$774** | [Note 15: Commitments, Contingencies and Guarantees](index=24&type=section&id=15.%20Commitments%2C%20contingencies%20and%20guarantees) As of March 31, 2025, the company had capital expenditure commitments of $631 million, primarily for growth initiatives. Additionally, letters of credit issued by the company's subsidiaries totaled $1.009 billion - The company has capital expenditure commitments of **$631 million**, with **$272 million** payable in 2025[92](index=92&type=chunk) - Letters of credit issued by subsidiaries as at March 31, 2025 were **$1,009 million**, slightly up from $1,002 million at year-end 2024[98](index=98&type=chunk) [Note 16: Related Party Transactions](index=25&type=section&id=16.%20Related%20party%20transactions) The company engages in significant transactions with its parent, the partnership, and Brookfield. Key transactions in Q1 2025 included $130 million in interest expense on borrowings and distributions to related parties. As of March 31, 2025, amounts due from related parties were $1.2 billion, while amounts due to related parties were $1.06 billion - In connection with the December 2024 Arrangement, the company entered into deposit and credit agreements with subsidiaries of the partnership, including a **$150 million** revolving credit facility[104](index=104&type=chunk) Key Related Party Transactions - Income Statement (Q1 2025, in millions) | Item | Amount | | :--- | :--- | | Revenues (Power purchase agreements) | $24 | | Interest income | $10 | | Direct operating costs | $(15) | | Interest expense (Borrowings and distributions) | $(130) | | Management service costs | $(23) | Related Party Balances (March 31, 2025, in millions) | Balance | Amount | | :--- | :--- | | Due from related parties (Current) | $1,197 | | Due to related parties (Current) | $521 | | Due to related parties (Non-current) | $535 | [General Information](index=29&type=section&id=General%20Information) [Corporate and Investor Information](index=29&type=section&id=Corporate%20and%20Investor%20Information) This section provides essential corporate details, including the head office address in New York, key officers such as CEO Connor Teskey and CFO Patrick Taylor, and the board of directors. The company's exchangeable shares are listed on the NYSE and TSX under the ticker 'BEPC' - Key Officers: Connor Teskey (Chief Executive Officer), Patrick Taylor (Chief Financial Officer)[114](index=114&type=chunk) - The company's exchangeable shares are listed on the New York Stock Exchange (NYSE) and the Toronto Stock Exchange (TSX) under the symbol '**BEPC**'[115](index=115&type=chunk)

Core Insights - Brookfield Renewable Partners reported strong financial results for Q1 2025, achieving record Funds From Operations (FFO) of $315 million, or $0.48 per unit, reflecting a 15% increase year-over-year when adjusted for strong hydro generation last year [2][25]. - The company is advancing growth initiatives, including the acquisition of National Grid Renewables and the completion of the privatization of Neoen, which enhances its operational capacity and market position [2][5][20]. - The energy market fundamentals remain robust, driven by digitalization and reindustrialization, despite global tariff uncertainties impacting market sentiment [3][6]. Financial Performance - For the three months ended March 31, 2025, Brookfield Renewable reported a net loss attributable to unitholders of $197 million, compared to a loss of $120 million in the same period last year [3][50]. - The company’s FFO per unit increased by 7% year-over-year, supported by stable, inflation-linked cash flows from its diversified global operating fleet [3][25]. - Revenues for the quarter reached $1.58 billion, up from $1.49 billion in Q1 2024, indicating a positive trend in operational performance [50]. Growth Initiatives - The company has a diversified global platform with nearly 45,000 megawatts of operating capacity, with approximately 90% of its portfolio contracted for an average duration of 14 years [8][14]. - Brookfield Renewable is actively pursuing asset recycling, having closed and agreed to the sale of $900 million in assets during the quarter, which is expected to generate significant proceeds [4][22][23]. - The acquisition of National Grid Renewables adds 3,900 megawatts of operating and under-construction assets, enhancing Brookfield's growth pipeline [17][18]. Market Positioning - The current market environment presents opportunities for well-capitalized companies like Brookfield Renewable to extend their leadership position amid public market valuation declines for renewable energy companies [16][24]. - The company’s strategic positioning, strong balance sheet, and access to capital allow it to capitalize on market bifurcation and pursue value-accretive acquisitions [14][24]. - Brookfield Renewable's diversified supply chain and proactive measures to mitigate tariff impacts position it favorably against competitors in the renewable sector [10][11]. Operational Highlights - The hydroelectric segment generated FFO of $163 million, while wind and solar segments contributed $149 million, benefiting from newly commissioned capacity [26][28]. - The distributed energy, storage, and sustainable solutions segments performed well, generating a combined $126 million of FFO, doubling from the prior year [29]. - The company expects to bring on approximately 8,000 megawatts of new renewable capacity in 2025, further enhancing its operational footprint [4][25].

Core Insights - The focus on artificial intelligence (AI) stocks has primarily been on semiconductor companies like Nvidia, which has experienced price volatility despite its strong position in AI chip design [1] - Conservative investors can consider alternative investments in companies that support AI growth without directly investing in AI stocks [2] Group 1: Challenges in AI - AI technology, while impressive, has limitations such as generating inaccurate information and difficulties in rendering certain images [3] - A significant challenge for AI is its high energy consumption, with electricity demand from data centers projected to increase by 300% over the next decade [5][6] Group 2: Investment Opportunities - Bloom Energy is positioned to meet the urgent power needs of AI and data centers, with a $2.5 billion product backlog and a $9 billion service backlog as of the end of 2024 [9] - Dominion Energy, a regulated utility, is experiencing a surge in demand for data center connections, with requests increasing by 88% in less than six months, which is likely to lead to earnings growth of 5% to 7% annually [11] - Brookfield Renewable focuses on clean energy solutions and has a multi-year, 10.5-gigawatt deal with Microsoft to support AI data centers, indicating strong growth potential in both clean energy and AI [13]

The U.S. is going to need a lot more electricity in the coming years. Demand drivers such as artificial inteligence (AI) data centers, the onshoring of manufacturing, and the electrification of everything will power a 55% surge in electricity demand by 2040, according to some estimates. Given the continued concerns surrounding climate change, this power will need to come from cleaner sources, including renewables, natural gas, and nuclear. This forecast makes energy companies focused on supporting growing e ...

There are three types of dividend stocks: those that don't change their dividend payments, those that have cut or eliminated their payouts, and those that initiate and grow their dividends. That last of those groups has significantly outperformed other dividend stocks over the long term: | Dividend Policy | | Returns | | --- | --- | --- | | Dividend growers and | 10.2% | | | initiators | | | | No change in dividend policy | 6.8% | | | Dividend cutters and | (0.9%) | | | eliminators | | | Given the returns d ...

Group 1 - Brookfield Renewable Partners (NYSE: BEP, NYSE: BEPC) is identified as a high-quality dividend growth investment, with recent share price declines leading to an increase in yield [1] - The macro trend of growing electricity demand, driven by the expansion of AI, is highlighted as a significant factor influencing the company's prospects [1] Group 2 - The investment group Cash Flow Club, which includes contributions from analysts focusing on company cash flows and capital access, is mentioned as a resource for investors [1]

Financial Performance and Reporting - BEP's financial performance for the year ended December 31, 2024, includes comprehensive cash flow reports and management's analysis[22] - The audit committee of BEPC oversees financial reporting and compliance, ensuring transparency and accountability[25] - The company is committed to maintaining compliance with international financial reporting standards (IFRS) to ensure accurate financial disclosures[47] - Brookfield Renewable's financial information is presented in U.S. dollars and prepared in accordance with IFRS, with all figures being unaudited unless otherwise indicated[78] - The company emphasizes that historical performance and market data may not be indicative of future results[77] Strategic Initiatives - The company is focused on expanding its battery energy storage system (BESS) capabilities to enhance renewable energy integration[28] - Brookfield Renewable's strategy includes leveraging its partnerships to optimize energy production and distribution across various markets[34] - The company is actively pursuing new power purchase agreements (PPAs) to secure long-term revenue streams[55] - Recent amendments to the Master Services Agreement aim to streamline operations and improve service delivery across subsidiaries[50] - The introduction of new renewable energy technologies is expected to drive growth and improve operational efficiency[34] - The company expects to continue pursuing acquisition opportunities and technology diversification to enhance its portfolio[70] Risks and Uncertainties - Forward-looking statements include expectations regarding financial performance, asset quality, and future energy prices, but these are subject to various risks and uncertainties[70] - Factors that could cause actual results to differ materially include changes in economic conditions, energy market volatility, and regulatory changes[72] - The company acknowledges potential risks related to equipment failures, procurement challenges, and inflationary pressures[73] - Brookfield Renewable's ability to manage commodity and financial risks is crucial for maintaining operational stability[73] Future Outlook - There is a focus on the resiliency of cash flow generated from renewable assets, which is critical for future growth prospects[70] - Future dividends and distributions to holders of BEP units and BEPC exchangeable shares are anticipated, reflecting the company's financial health[70] Corporate Structure and Governance - The limited partnership agreement of BEP was amended and restated on May 3, 2016, with ongoing updates[23] - BEPC, which will transition its name on December 24, 2024, is a key entity within the Brookfield Renewable structure[24] - The company is committed to complying with regulatory requirements and securing necessary governmental approvals for its projects[73]

Want to invest in the future of energy? This renewable energy stock is poised for long-lasting growth.Renewable energy is here to stay.For example, sales of electric vehicles in the U.S. soared from 294,000 in 2021 to 1.4 million three years later, according to data from the International Energy Agency (IEA). Utility companies are not doubling down on old-school fossil fuels to support the resulting surge in electric power demand, but exploring alternatives such as wind and solar energy instead. As a result ...